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Sku,Stock Keeping Unit
A SKU stock keeping unit (SKU) is a unique identifier for a specific product or item in a company’s inventory management system. It is a code used to track inventory levels, order quantities, and other information related to each item.
Key Components of a SKU:
- Item Code: A numerical or alphabetical code that uniquely identifies each item.
- Product Attributes: Attributes such as size, color, flavor, or other relevant factors that differentiate the item.
- Location Code: A code that indicates the physical location of the item in the warehouse or store.
- Batch Number: A unique identifier for a specific batch of items with the same characteristics.
- Expiration Date: The date when the item is expected to expire or be replaced.
Benefits of SKU Stock Keeping Units:
- Improved Inventory Accuracy: SKU SKUs help track inventory levels accurately, reducing errors and waste.
- Efficient Order Fulfillment: SKUs streamline order fulfillment by providing a single point of reference for each item.
- Inventory Optimization: SKU SKUs allow companies to optimize inventory levels based on demand and usage patterns.
- Track Inventory Movement: SKUs track inventory movement and identify trends, enabling better inventory management.
- Reduced Costs: By reducing inventory errors and optimizing inventory levels, SKUs can help reduce costs associated with inventory management.
Examples:
- A company sells a blue t-shirt in size medium and large. The SKU for the medium size might be “ABC12M,” while the SKU for the large size would be “ABC12L.”
- A grocery store has a SKU for each type of fruit, such as “FR01” for apples, “FR02” for oranges, and “FR03” for grapes.
Additional Notes:
- SKUs are used in various inventory management systems, including Enterprise Resource Planning (ERP) systems.
- The format and length of SKUs can vary depending on industry and company practices.
- SKUs are dynamic and can be adjusted over time as items are updated or new items are added to the inventory.